Cost Segregation

A Cost Segregation Study is a tax savings tool that allows previously classified assets subject to 39-year depreciable life for a commercial building and 27.5-year for a residential building to reduce current income tax liabilities by accelerating depreciation deductions for qualifying components. The study identifies assets within a building that can be reclassified into a much shorter depreciation recovery period.

  • “Cost Segregation is a lucrative tax strategy that should be used in almost every major purchase of commercial real estate” – The Wall Street Journal

Benefits of a Cost Segregation Study

  • Generates immediate increase in cash flow through accelerated depreciation deductions
  • Reduces income taxes and can also reduce real estate property taxes.
  • Provides an easy opportunity to claim ‘catch up’ depreciation on previously misclassified assets.
  • Provides an independent third-party analysis that will withstand IRS review

Who Benefits

  • Property owners with a current year tax liability


  • New construction
  • Purchase of existing property
  • Renovations or expansion
  • Leasehold improvements
  • Existing property placed in service after 1986 (“look-backs”)
  • Real property stepped-up through estate
  • Over $500,000

Prime Tax Experience

Prime Tax Group is everywhere that you are. We have a nation-wide support network, so wherever your property, we can come to you. We’ve helped property owners save on buildings in almost every industry. We evaluate your business from both an IRS defined engineering based standpoint and financial standpoint and while keeping in mind your facilities’ unique needs. We can give you the most accurate deduction estimate available, and we will work with your tax professional to implement it.

Connect with a Cost Segregation Expert Today!